Protecting yourself with small business insurance is a necessary expenditure. The financial protection provided by an insurance policy can be beneficial for your business in times of need, but the process of buying insurance may not be as exciting. In fact, it can be a very tedious and confusing process for someone purchasing business insurance for the very first time. For this reason, we have made a list of factors that one must consider before closing in on an insurance policy:
1. Assess your potential risks:
The starting point in insurance shopping is to understand what you need. You do this by identifying the potential risks that your business may face. What if the construction site collapses? What if a worker suffers an injury onsite? Based on your assessment of risk, you can determine the types of small business insurance coverages you should to apply for.
2. Find a trusted source:
While having options to choose from is considered a privilege, it can be overwhelming when there are a plethora of insurance providers in the market. In business, the rule of thumb is to work with people whom you can trust and know will deliver in your time of need. It is no different when applying for insurance.
3. Keep in mind your worst-case scenario:
While you can try your best to manage risk and limit unsafe acts on the part of employees, you cannot fully eliminate the chance of a claim. If you subscribe to Murphy’s Law, you are better off preparing for the worst case scenario to make sure you are covered in your time of need.
4. Understand the proposed policy:
Very few things can be as frustrating as filling out all the paperwork to file an insurance claim, only to find out that your small business insurance policy does not even cover that claim! Insurance lingo can be confusing and the details of a policy can be overwhelming. Make sure to review the depths and limitations of your policy thoroughly to identify the exact terms of your coverage.
Zensurance is Canada’s leading online commercial insurance broker. We offer a full range of insurance products to small businesses, with a particular focus on digitizing businesses and technology startups. We understand what it is to work with new technology, and know the most common risks of which you should be aware. Based on that (and a lot of analytics), we recommend the ideal insurance coverage for your business.